HONG KONG: Bank of East Asia Ltd, the third-biggest Hong Kong-based lender by market value, soared the most in 11 years in local trading on speculation Guoco Group Ltd may offer to buy the bank.
The stock gained 15% to a 15-month high of HK$33.35 (RM14.53) at the 4pm market close in Hong Kong. Guoco, controlled by Malaysian billionaire Tan Sri Quek Leng Chan, rose 1% to HK$96.75.
Guoco has raised its stake in Bank of East Asia, run by the family of chairman David Li, to 8% from 5% in March, according to a stock exchange filings. A company controlled by Quek in 2001 sold Hong Kong lender Dao Heng Group Ltd to DBS Group Holdings Ltd for HK$5.3 billion.
“Guoco probably sees this as an opportunity to get back to the Hong Kong banking market,” said Lee Yuk-kei, a Hong Kong- based analyst at Core-Pacific Yamaichi International Ltd. “This can help them open up a new gateway to China. Whether the Li family is willing to sell is another matter.”
The year after Quek’s Hong Leong Group sold Dao Heng, the billionaire’s bid to buy Hong Kong lender International Bank of Asia Ltd failed.
Guoco is Bank of East Asia’s second-largest shareholder behind Criteria CaixaCorp, the holding company for Spain’s biggest savings bank, which has 8.99%. Li, whose grandfather co-founded the bank, holds 2.9%, according to data compiled by Bloomberg.
Salina Tong, a spokeswoman at Bank of East Asia in Hong Kong, said the company didn’t know the reason behind yesterday’s share movement. She declined to confirm the number of shares held by the Li family.
Stella Lo, Hong Kong-based company secretary at Guoco, declined to comment on whether the firm is planning a takeover of Bank of East Asia. The stake is “part of our strategic investment,” she said in an interview. -— Bloomberg
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- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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